unit 4 economics Flashcards
What is structuralist model?
rich countries have more power than poor countries
What are two ways a developing nation can get loans?
IMF (internal Monetary Fund) and World Bank
What is fair trade?
farmers get paid more than the land owner because they do more work
How is HDI measured?
standard of living, long and healthy life, access to knowlege
Explain the differences between GNI and GNP
GNI: outputs of goods and services produced by a country in a year including money that enters and leaves the country
GNP:outputs of goods and services produced by a country in a year excluding money that enters and leaves the country
What is PPP?
purchasing power parity: adjusting GNI for the cost of goods/inflation
What is IHDI?
inequality adjusted HDI
How are consumer goods a measure of development?
goods and services relate to communications/technology
how many people have cars or cellphones?
What are the three barriers of economic development?
low levels of social welfare, political instability, foreign debt
What are islands of development?
places for foreign investment, jobs, and infrastructure
What are the three costs of economic development?
industry, agriculture, tourism
What are the two paths to economic development?
self-sufficient: domestic products
internal trade: foreign products
What are liberal models?
all countries pass through the same stages of economic development on an even playing field
What is stage one of Rostow’s model of development?
Traditional: farmers, hunting & gathering, no money, trade
What is the second step of Rostow’s model of development?
Pre-conditions to Take-off: money, better infrastructure, colonization
